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What will an increase in taxes on consumers most likely cause?
Wiki User
∙ 13y ago
This depends on what type of tax it is, lump sum or marginal.
Lump sum: a lump sum consumption tax would not affect the general level or composition of consumption because fixed quantities do not affect optimal consumption-savings decisions.
Marginal tax: if the marginal tax increased (i.e.) a general sales tax increase), it would decrease overall consumption because the tax would be an increase in the cost of consuming, and thus encourage the consumer to save more money and consume less.
Wiki User
∙ 13y ago
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How would the US government most likely react to a slump in the economy?
Lower taxes to make it easier for consumers and businesses to spend money.
Why do taxes increase?
taxes increase as the debt cieling increases to keep the american government in order and slow the "digging our own hole to fall in".
Are taxes levied on consumers or the producers?
taxes are usually levied up on producer but by shifting tax the consumer aer also effected
What do progressive and liberal economists want to increase?
taxes
Increase in old taxes and new taxes on imported goods to raise money for England?
Grenville Program
What would most likely occur if the government's priority was to increase government expenditures?
increase taxesincrease taxesincrease taxes.
What was the cause for gas prices to increase?
it had something to do with taxes
How would the government most likely respond to decrease in consumer spending?
Lower taxes to make it easier for consumers and business to spend money.
How would the US government most likely react to a slump in the economy?
Lower taxes to make it easier for consumers and businesses to spend money.
How may government lessen the problem of unemployment?
the government can use its powers to increase levels of spending by consumers, businesses, and the government itself and by lowering taxes or giving tax incentives
What are the effects of sales tax on consumers?
Sales tax directly reduces consumers buying power. When sales taxes are high, consumers are forced to spend more money on taxes and less to spend on other items.
Who can be considered as bearing the burden of indirect taxes?
Consumers.
How does lowering taxes help?
Lowering taxes, either personal or corporate taxes, provides more capital in the hands of consumers or business ... capital for consumers to spend on the goods and services provide by business ... capital for businesses to grow, expand and hire.
Today what are the advantages of mnc's in India?
1.Increase in job oppurtunities 2 better and cheaper products will be available to the consumers 3 the govt will also benefit by earning more in taxes etc 4 it will lead to an increase in infrastucture improvement sunita thakur
Did taxes increase or reduce?
Reduce
What is the incidence of indirect taxes?
Incidence of indirect taxes indicate how much burden of indirect taxes will be borne by the producers and how much by the consumers by way of rise in price.
What factors are affected when taxes are raised or lowered?
When taxes are raised and lowered, the economyi s affected, the money exchange rates and also the lives of people and consumers. This is because there lowering and highering of taxes will take its toll on the consumers and how they are able to balance their salaries and incomes for everyday use.
